ABC Ltd has identified an impairment loss of $1,8000 on one of its CGUs The...
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Accounting
ABC Ltd has identified an impairment loss of $1,8000 on one of its CGUs
The CGU consists of the following assets (stated at current carrying amounts):
Buildings 800,000
Equipment 200,000
Land 300,000
Fittings 150,000
The Recoverable Amount (FV-CD) of the building is $600,000
Required:
Calculate the allocation of impairment loss against all assets in the CGU. As the FV-CD of the building is $600,000, the maximum impairment loss that can be allocated to the building is limited to $200,0000.
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